The bill amends Arkansas Code 8-7-907 regarding payments for corrective actions related to petroleum storage tanks. It establishes that no payment from the Petroleum Storage Tank Trust Fund will be made until the owner or operator has expended a deductible set by the Arkansas Pollution Control and Ecology Commission, replacing the previous fixed amount of $7,500. The bill clarifies that this deductible is intended to function similarly to an insurance policy deductible. Additionally, it mandates that owners or operators must demonstrate financial responsibility for this deductible amount.

Furthermore, the bill modifies the conditions under which payments for corrective actions may be denied. It introduces a new provision that allows the Arkansas Pollution Control and Ecology Commission, with input from the Advisory Committee on Petroleum Storage Tanks, to set a deductible amount that can range from $7,500 to a maximum of $30,000 based on rule violations. The bill also allows for differentiation in the deductible amount depending on the specific rule violated, ensuring that the penalties are proportionate to the severity of the violation.

Statutes affected:
Old version HB1277 V2 - 3-18-2025 10:43 AM: 8-7-907(a), 8-7-907(d)
Old version HB1277 Original - 1-28-2025 10:59 AM: 8-7-905(d), 8-7-907(a), 8-7-907(d), 8-7-907
HB 1277: 8-7-905(d), 8-7-907(a), 8-7-907(d), 8-7-907
Act 706: 8-7-907(a), 8-7-907(d)